What Happens If My Bank Account Becomes Dormant?

Rebecca Lake, CEPF® Mon, January 29, 2024

Using multiple bank accounts can be a good way to separate funds for different financial goals. However, if you forget about one of those accounts it could end up falling dormant. A dormant bank account is an account that registers no financial activity for an extended period of time. The amount of time that it takes for a bank account to be considered dormant can depend on the bank.

Dormant Bank Account Definition

A dormant bank account is a bank account that has no financial activity occurring for an extended time period. Generally, a bank account may be ruled dormant if there are no new:

Deposits  **  Credit transactions  **  Debit transactions  **  ACH transfers in or out of the account

ATM withdrawals  **  Debit card purchases  **  Automated transactions, such as preauthorized bill payments

In other words, leaving a bank account dormant means that it’s sitting and doing nothing. A dormant savings account may continue to earn interest on the existing balance, but there are no new deposits being made.

What kind of bank accounts can become dormant? Generally, any deposit account could fall into dormancy. That includes checking accounts, savings accounts, money market accounts and certificate of deposit (CD) accounts. Safe deposit boxes aren’t necessarily excluded either, as your bank may consider your account dormant if your rental fees go unpaid for an extended period.

Why Do Bank Accounts Become Dormant?

There are lots of reasons why a bank account may become dormant. Here are a few scenarios that can result in a dormant account:

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https://www.yahoo.com/finance/news/long-does-bank-account-become-130028748.html